Nippon Life India Asset Management Limited (NAM India), asset manager of Nippon India Mutual Fund (NIMF), has announced the launch of Nippon India Nifty Auto ETF,.

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The Auto ETF is an open-ended scheme replicating/ tracking Nifty Auto Index.

The NFO will open on January 5, 2022 and close on January 14, 2022. The minimum investment amount required during New Fund Offer (NFO) is Rs 1,000 and in multiples of Re 1 thereafter.

Nippon India Nifty Auto ETF will predominantly invest in stocks comprising of the Nifty Auto Index in the same proportion as the Index. It will provide exposure to top 15 (as per Nifty Auto Index methodology) companies representing auto-related sectors like Automobiles 4 wheelers, Automobiles 2 and 3 wheelers, Auto Ancillaries, and Tyres.

The ETF is fully designed to reflect the behaviour and performance of the Automobiles sector. It will be benchmarked against Nifty Auto TRI. The investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty Auto Index before expenses, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

Speaking at the launch, Hemen Bhatia, Head ETF, Nippon India Mutual Fund said, “Nippon India Mutual Fund has been at the forefront of a very fast-growing industry, establishing one of the most robust and differentiated ETF platforms in India. Nippon India Nifty Auto ETF is yet another addition to our ETF offerings, helping investors to participate in India's Auto sector growth story through investing in a basket of 15 stocks representing the Nifty Auto Index. Nippon India Nifty Auto ETF which is the first Auto sector ETF to be launched in India, will provide a simple and low-cost (in terms of total expense ratio) portfolio building block to participate in the auto sector”.

(Edited by : Anshul)

First Published:Jan 3, 2022 12:25 PM IST